Oil Blocks to be Auctioned Under Hydrocarbon Exploration Licensing Policy (HELP)

Auction of new blocks will enhance the drilling and production activities leading to increase in business of oilfield service in India

India:  The government of India has planned to auction new oil fields under the new Hydrocarbon Exploration Licensing Policy (HELP) by start of year 2017, as a part of strategy to ensure energy security for India and to improve domestic production. HELP has replaced NELP (New Exploration Licensing Policy), and is an innovative Policy which provides a uniform licensing system to cover all hydrocarbons such as oil, gas, coal bed methane etc. under a single licensing framework. It also allows pricing and marketing freedom for all forms of hydrocarbons to be produced from a field.

TechSci Research depicts that the new Hydrocarbon Exploration Licensing Policy (HELP) will have a major impact on investments into the Indian oil & gas sector for increasing domestic production. India meets around 80% of its crude oil demand through imports leading to huge import bills. The increase in domestic production will help in to reduce the budget deficit. Moreover, it will also lead to increase in investment by private sector in India’s oil & gas exploration sector. The award of new blocks would surge ongoing Exploration & Production (E&P) activities resulting in a major boost to India Oil Field Services market.

According to a released report of TechSci Research, “India Oilfield Services Market Forecast & Opportunities, 2020”, the country’s oilfield services market is projected to surpass USD7.8 billion by 2020, on account of anticipated increase in oil and gas E&P activities. Government’s decision of auctioning new fields based on new revenue sharing model is expected to boost oil and gas E&P activities over the next five years, which in turn would fuel growth in the country’s oilfield services market through 2020.